DoD Spends $4.35M on C-130J De-Icing Timer Units from Lockheed Martin
Contract Overview
Contract Amount: $4,350,708 ($4.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-05-31
End Date: 2025-07-31
Contract Duration: 792 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-130J DE-ICING TIMER UNIT
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $4.4 million to LOCKHEED MARTIN CORP for work described as: C-130J DE-ICING TIMER UNIT Key points: 1. High unit cost for a specialized component. 2. Sole-source procurement limits competitive pricing. 3. Potential for cost overruns with Cost Plus Fixed Fee contract. 4. Aircraft manufacturing sector context is relevant.
Value Assessment
Rating: questionable
The unit cost appears high for a timer component. Benchmarking against similar aircraft parts or maintenance contracts is needed to confirm value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition likely resulted in higher pricing than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding for this critical aircraft component.
Public Impact
Ensures operational readiness of C-130J aircraft. Supports critical military airlift capabilities. Potential for increased maintenance costs if pricing is not optimized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Cost Plus Fixed Fee contract type
- Lack of competitive bidding
- High unit cost
Positive Signals
- Essential for aircraft operation
- Supports long-term defense needs
Sector Analysis
This procurement falls within the aircraft manufacturing sector, which often involves specialized, high-value components. Spending benchmarks for similar avionics or maintenance parts are crucial for assessing value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable, and that future procurements are competed where possible.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition.
- Cost Plus Fixed Fee contract increases government risk.
- High unit cost requires validation.
- No small business participation noted.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.4 million to LOCKHEED MARTIN CORP. C-130J DE-ICING TIMER UNIT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2023-05-31. End: 2025-07-31.
What is the justification for the sole-source award of the C-130J de-icing timer unit?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. Without a competitive process, it's difficult to independently verify if these conditions truly exist or if they were the most cost-effective solution for the Department of Defense.
How does the Cost Plus Fixed Fee contract structure impact the final cost and risk for the government?
A Cost Plus Fixed Fee contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to control costs to maximize their fee, it shifts much of the financial risk to the government, as the final cost can exceed initial estimates if costs escalate.
What is the long-term strategy for procuring C-130J de-icing timer units to ensure cost-effectiveness?
The long-term strategy should focus on exploring opportunities for competitive bidding on future requirements. This could involve market research to identify potential alternative suppliers, encouraging competition, or negotiating long-term agreements with price reduction incentives to mitigate the impact of sole-source awards.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,350,708
Exercised Options: $4,350,708
Current Obligation: $4,350,708
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,256,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862520D3000
IDV Type: IDC
Timeline
Start Date: 2023-05-31
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2026-01-08
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